UK Consumers are choosing own-brand products to try and manage their ever-increasing grocery bills which are second only to energy bills. Here’s what the real data (and Kantar’s resident expert Fraser McKevitt, head of retail and consumer insight) reports.
As the cost of living crisis progresses, we at Atlante remain committed to helping our clients’ brands grow. We stay on top of global food trends through carefully tracked market insights.
Our team is proud to take action on the global food crisis with ongoing charitable efforts and industry-supporting events. To best serve our clients throughout this tricky time, we also report the latest data on the changing grocery price landscape.
Read on for stats about the food and drink supply industry plus facts about consumer habits and Atlante’s own brand success.
Back in July, it was reported by the Grocery Gazette that own-brand products had taken a hit during the pandemic where customers chose familiarity and security, which were offered by the big-name brands, thus private label sales fell in Europe in 2021.
We reported mid-way through October that UK consumers are favouring own-brands amid the cost of living crisis, as in September own label sales increased by 8.1% whilst branded items declined by 0.7%.
Now supermarket own label sales have jumped again by 10.3% over the last four weeks, according to Kantar’s latest figures.
There are many factors that are affecting this but one of the main ones is that consumers are facing a £682 rise in their annual grocery bill, choosing own-brand over branded goods, now that over ¼ of households are saying that they are struggling financially.
The UK is experiencing the fastest rate of market growth since April 2021. Take-home grocery sales have risen by 5.2% in the 12 weeks leading up to 30 October 2022, according to data collected from Kantar.
Four-week grocery price inflation has also hit another record high since Kantar began tracking prices in this way in 2008, now sitting at 14.7% with no ceiling in sight.
“Yet again, we have a new record high figure for grocery price inflation,” says Fraser McKevitt, our head of retail and consumer insight at Atlante. “And it's too early right now to call the top.”
It’s clear that consumer habits (and wallets) are feeling this change. Unfortunately, the financial impact of this inflation is likely to hit households hard in the coming months.
“In what is a fiercely competitive sector, supermarkets are reacting to make sure they’re seen to acknowledge the challenges consumers are facing and offer the best value, in particular by expanding their own label ranges,” reports Kantar.
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Where should a supermarket's own-brand buyer begin? If you’re looking to source quality Italian products, Atlante can help you find the right producers and suppliers.
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